Research from the Chartered Institute of Internal Auditors has revealed that more than half of the fines handed out by the Financial Services Authority (FSA) in 2011 were as a result of weak internal risk management systems. Fines can be issued by the FSA when organisations breach any of the eleven principles (operational and ethical). The recent research announced by the Chartered Institute of Internal Auditors, shows that 60% of the FSA’s fines in 2011 were as a result of weak risk management systems – in 2010, 55% of fines were levied as a result of this.
Dr Ian Peters, Chief Executive of the Chartered Institute of Internal Auditors says:
